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Indonesia: Government Cancels Universal Service Tender Print E-mail
Friday, 07 December 2007
Indonesia’s government has cancelled the universal service obligation (USO) tender.

Gatot S. Dewa Broto, from the Directorate General of Post and Telecommunication said that the government would likely re-run the tender in 2008. Gatot said that many tender participants, including the two remaining contenders at the final phase, were not able to meet the government’s requirements. Through the USO tender, the government plans to award a fixed-line license.

"It is urgent for us to review the regulations on the use of fixed-line technology in USO areas," he added.

The winner of the tender will be allowed to provide fixed-line and VoIP service in the blocks that they have won. If the winner does not possess a long-distance license, the government will issue an Internet telephony license. The winner will also get 2.3 GHz frequency to provide WiMAX broadband services.

The USO program is expected to collect US$ 842 million over five years to 2013. Gatot added that following the cancellation, the government would return the guarantee money to all participants.

At the final phase of the tender, only two participants remained, PT Telkom and ACeS Ltd.

Source: Bisnis Indonesia - WDR/Intelecon Regulatory News.